In the early American session, bearish pressure on the USD/JPY was reinforced.
The yield on a 10-year US Treasury bond has dropped by more than 5%.
The US Dollar Index continues to rise, approaching 92.50.
The USD/JPY pair lost traction in the early American session after spending the first half of the day trading in a pretty narrow range below 111.00. It was last seen dropping 0.35 percent on the day at 110.55.
On Tuesday, the significant drop in US Treasury bond yields appears to be impacting on USD/JPY. The benchmark 10-year US Treasury bond yield is currently trading at 1.35 percent, its lowest level since late February, and has lost more than 5% on a daily basis.
The broad-based USD strength, on the other hand, is assisting USD/JPY in limiting its losses for the time being. The US Dollar Index is currently trading at 92.40, up 0.18 percent.
The ISM Services PMI fell to 60.1 in June from 64 in May, according to US data released on Tuesday. This figure fell short of the market consensus of 63.5. The Prices Paid Index component fell to 79.5 from 80.6, according to the publication’s findings.
The preliminary Coincident Index and Leading Economic Index for May from Japan will be scrutinized for new impetus on Wednesday./n
